Question

Example of a business transaction which results in increase in one asset and decrease in another

Answer 1

Answer:

Increase in asset and decrease in another asset

Decrease in liability and increase in another liability

Decrease in asset and decrease in owner’s equity

Increase in asset and increase in owner’s equity

Explanation:

The process starts with a transaction analysis to determine whether an economic event has occurred that changes assets, liabilities, or stockholders' equity. After making this determination, a company journalizes and posts transactions to its ledger accounts.